Hedge Funds Are Dumping iGATE Corporation (IGTE)

Page 1 of 2

In the financial world, there are plenty of metrics market participants can use to track publicly traded companies. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outperform the market by a solid amount (see just how much).

Equally as crucial, optimistic insider trading sentiment is another way to look at the marketplace. As the old adage goes: there are a variety of reasons for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this tactic if “monkeys” know where to look (learn more here).

iGATE Corporation (NASDAQ:IGTE)

Keeping this in mind, let’s examine the latest info about iGATE Corporation (NASDAQ:IGTE).

How have hedgies been trading iGATE Corporation (NASDAQ:IGTE)?

At the end of the second quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of -25% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully.

Out of the hedge funds we follow, Ken Griffin’s Citadel Investment Group had the biggest position in iGATE Corporation (NASDAQ:IGTE), worth close to $3.3 million, comprising less than 0.1%% of its total 13F portfolio. The second largest stake is held by Gotham Asset Management, managed by Joel Greenblatt, which held a $3.2 million position; 0.1% of its 13F portfolio is allocated to the company. Some other hedgies that are bullish include Peter A. Wright’s P.A.W. CAPITAL PARTNERS, Robert B. Gillam’s McKinley Capital Management and D. E. Shaw’s D E Shaw.

Judging by the fact that iGATE Corporation (NASDAQ:IGTE) has witnessed dropping sentiment from upper-tier hedge fund managers, logic holds that there was a specific group of funds who were dropping their positions entirely last quarter. It’s worth mentioning that Clifton S. Robbins’s Blue Harbour Group sold off the biggest investment of the “upper crust” of funds we key on, totaling an estimated $59.9 million in stock. Donald Chiboucis’s fund, Columbus Circle Investors, also sold off its stock, about $3.2 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 3 funds last quarter.

Insider trading activity in iGATE Corporation (NASDAQ:IGTE)

Insider buying made by high-level executives is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time period, iGATE Corporation (NASDAQ:IGTE) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to iGATE Corporation (NASDAQ:IGTE). These stocks are Sykes Enterprises, Incorporated (NASDAQ:SYKE), Radware Ltd. (NASDAQ:RDWR), Acxiom Corporation (NASDAQ:ACXM), Unisys Corporation (NYSE:UIS), and EPAM Systems Inc (NYSE:EPAM). This group of stocks are the members of the information technology services industry and their market caps are closest to IGTE’s market cap.

Page 1 of 2